Correlation Between Indo Tambangraya and Geo Energy
Can any of the company-specific risk be diversified away by investing in both Indo Tambangraya and Geo Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Indo Tambangraya and Geo Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Tambangraya Megah and Geo Energy Resources, you can compare the effects of market volatilities on Indo Tambangraya and Geo Energy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Indo Tambangraya with a short position of Geo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Tambangraya and Geo Energy.
Diversification Opportunities for Indo Tambangraya and Geo Energy
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Indo and Geo is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Indo Tambangraya Megah and Geo Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geo Energy Resources and Indo Tambangraya is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Indo Tambangraya Megah are associated (or correlated) with Geo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geo Energy Resources has no effect on the direction of Indo Tambangraya i.e., Indo Tambangraya and Geo Energy go up and down completely randomly.
Pair Corralation between Indo Tambangraya and Geo Energy
If you would invest 17.00 in Geo Energy Resources on November 28, 2024 and sell it today you would earn a total of 0.00 from holding Geo Energy Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Indo Tambangraya Megah vs. Geo Energy Resources
Performance |
| Timeline |
| Indo Tambangraya Megah |
| Geo Energy Resources |
Indo Tambangraya and Geo Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Tambangraya and Geo Energy
The main advantage of trading using opposite Indo Tambangraya and Geo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Tambangraya position performs unexpectedly, Geo Energy can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Geo Energy will offset losses from the drop in Geo Energy's long position.| Indo Tambangraya vs. Bukit Asam Tbk | Indo Tambangraya vs. Adaro Energy Tbk | Indo Tambangraya vs. Geo Energy Resources | Indo Tambangraya vs. Yanzhou Coal Mining |
| Geo Energy vs. Yanzhou Coal Mining | Geo Energy vs. Indo Tambangraya Megah | Geo Energy vs. Bukit Asam Tbk | Geo Energy vs. Thungela Resources Limited |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |